Cyber security spending in Europe is poised for significant growth, with a projected increase of 12.3 percent in 2024. This marks another year of robust momentum, characterized by double-digit growth, IDC report said.
The forecast indicates that cyber security spending in the European region will escalate throughout the entire 2022-2027 period, with expenditures anticipated to reach $84 billion by 2027. Notably, Central and Eastern European (CEE) countries are expected to experience the highest growth rates, such as 15.4 percent in the Czech Republic and 13.4 percent in Hungary, largely propelled by the continuous expansion of the software market.
Key growth areas across all European countries are projected to be security software and services. Even the top spenders in the region, including the U.K., Germany, and France, which collectively constitute more than 50 percent of the European market, are expected to prioritize investments in these sectors.
Mark Child, associate research director at IDC European Security, emphasized the unprecedented cyberthreat levels faced by European organizations. He attributed these challenges to factors such as the flourishing cybercrime economy, the proliferation of attack tools on the dark web, and the volatile geopolitical landscape.
Efforts to bolster cyber resilience at a regional level are underway within the European Union, with legislative measures aimed at enhancing cybersecurity strategies and increasing executive management involvement. However, IDC stresses that combating these threats necessitates comprehensive engagement from all organizations.
To effectively address cyber risks, IDC recommends that cybersecurity investment strategies focus on enhanced risk quantification, a blend of preventive and proactive measures, inclusivity of all user groups and business processes, and the cultivation of requisite skills and resources both internally and through third-party sources.
IDC says banking, central government, local government, telecommunications, and retail are projected to allocate the most resources to security measures in 2024. Together, these industries are expected to contribute nearly 38 percent of the total European security market.
Among these, banking is anticipated to experience the fastest growth rate at 14.2 percent year-on-year, followed by media and entertainment at 14.0 percent, and aerospace and defense at 13.8 percent, IDC said.
Stefano Perini, research manager at IDC European Data and Analytics, highlighted the evolving threat landscape, with cybercriminals increasingly leveraging sophisticated tools, including generative AI. He emphasized that security is transitioning from a technical necessity to a strategic imperative for companies across all industries to maintain competitiveness, particularly in sectors such as banking, media, defense, telecommunications, and government.
Moreover, small and medium-sized businesses (SMBs), traditionally less equipped to handle cybersecurity challenges compared to larger enterprises, are anticipated to be particularly vulnerable to cyberattacks. In response, Perini noted a growing focus among SMBs on managed services and employee training to mitigate emerging security risks.
